expert witness and dispute support property damage and business interruption insurance ... ·...

Baker & O'Brien consultants are frequently retained as consulting or testifyingexperts and have been qualified to offer evidence in many insurance-related mattersinvolving the energy industry. Services to the insurance industry include: (a)valuation of assets for purposes of determining insurable values; (b) forensicinvestigations to determine cause and liability; (c) estimates of property damage andcost to rebuild; (d) business interruption claims due to accidents or otherunscheduled downtime; (e) estimates of loss incurred during the transportation,storage, and processing of oil or gas; and (f) technical assistance in the claimadjustment process. Our insurance industry clients have included some of thelargest underwriters and brokerage houses in the world.

RELATED INDUSTRIESAdditional Process IndustriesGas ProcessingOil and Gas ProductionPetrochemical / ChemicalPetroleum RefiningPower GenerationRenewable / Alternative EnergyTransportation and Storage

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EXPERT WITNESS AND DISPUTE SUPPORT

Property Damage and Business Interruption Insurance Claims

PRIMARY CONTACTS

Daniel R. FineltConsultantHouston

Peter W. HallidayVice PresidentDallas

Charles J. HirstSenior Vice PresidentDallas

David C. TammSenior Vice PresidentHouston




RELATED EXPERIENCEAmmonia Plant Insurance DisputeAssisted in evaluating insurance claims asserted by a major ammonia manufacturer. Work included evaluation of the technicalbasis for claims involving construction defects and warranty work amounting to $3 million. Assisted in documenting claims,inspected the plant, evaluated project records, and reviewed maintenance records. Business Interruption Damages Claim by Concrete SupplierAssisted in a dispute between a concrete products producer and marketer against an oil refiner for damages allegedly incurred asa result of an incident at the oil refinery. Examined the timeline of the incident and provided an independent damage estimate. Business Interruption and Construction - RefiningMonitored engineering and construction efforts undertaken to rebuild production facilities damaged by fire. The engagement wasto ascertain the appropriate construction period for business interruption claim purposes and to facilitate the incident root causeanalysis. Activities included daily site inspections, regular consultations with plant engineering and construction personnel,progress assessments, and development of independent project schedules. Chemical Plant Insurance Claim SupportProvided comprehensive technical and accounting support for a property damage claim settlement and analysis for a chemicalmanufacturing plant that was damaged during a hurricane. Work included review of all repair cost estimates and invoiced repairinvoices, as well as analysis of claimed damages discovered and submitted post-recovery. Assistance was also provided duringfinal claim settlement negotiations. Crude Oil Processing Contract DisputeServed as expert witness concerning a dispute between an international oil trading company (Trader) and an independent refiningcompany (Refiner), between whom there was a crude oil processing contract. The Trader alleged that the Refiner misappropriatedproducts to its own account. Analyzed the refinery production and product disposition under each processing deal over a period ofthree years and calculated the damages under the alleged misappropriation. Prepared an independent detailed damages claim forinsurance purposes and defended the claim at trial. Defective Product LawsuitProvided an expert report concerning a dispute between a pressure safety relief device manufacturer and an operator of a claimthat a device did not operate as designed in a reactor overpressure incident. Gas Pipeline Rupture DisputePerformed an independent assessment of the costs incurred, including the lost natural gas inventory, on a ruptured interstate gastransmission line for which the owner requested a multi-million dollar damage reimbursement. A report was prepared for mediationwhich resulted in a negotiated settlement. Gas Turbine DamageAssisted in a root-cause analysis and damages dispute concerning a major turbine failure in the start-up of a power plant. Hurricane Rita ClaimA petrochemicals facility experienced a loss of steam supply from an outside steam supplier and a subsequent unscheduledshutdown which, in turn, resulted in production losses and major damage to the facility. The steam supplier attributed the steamoutage to boiler damage caused by a hurricane, which had made landfall several months earlier. Assisted by investigating the linkbetween the hurricane and the steam supplier boiler outages. Incident Analysis - PetrochemicalsPerformed an investigation analysis following fire and explosion incidents at a major Gulf Coast manufacturing facility. The




Performed an investigation analysis following fire and explosion incidents at a major Gulf Coast manufacturing facility. Theengagement entailed development of the sequence of events, root cause analysis, assessment of the decision to rebuild, andreconstruction monitoring. An independent project schedule and cost estimate for the plant reconstruction was developed. Insurance ArbitrationInvestigated the circumstances surrounding an oil spill at a Gulf Coast refinery following a hurricane. Work focused on whether therefiner acted as a "prudent operator" before and after the hurricane and whether the owner was entitled to a claim for damagesbased on an insurance policy's pollution exclusion clause. Prepared a written report for submission into evidence in aninternational arbitration. Insurance Litigation of Refinery Environmental ContaminationProvided expert witness testimony and analysis in the litigation of insurance coverage for previous environmental contamination ofpetroleum refineries located on the East Coast, West Coast, and Midwest. Evaluated both liability and damage claims based onthe multiple insurance contracts for each site. PVC Plant LitigationAssisted in a dispute concerning allegations that an explosion at a major manufacturer of PVC resins was due to a poor processdesign that failed to meet government regulations and engineering standards. Assisted in discovery, inspected the plant,evaluated procedures and work methods, reviewed applicable standards, and reviewed operating records. Supply and DistributionAssisted in a dispute concerning the effects of Hurricanes Katrina and Rita on jet fuel prices for the Gulf Coast market. Thesequence of events and impacts on individual suppliers were developed, as well as an allocation of outages and price differentialsattributable to each hurricane. Our analysis of pricing activity also considered estimates of normalized versus event-based pricemovements in the overall market. Subsea Pipeline RuptureAssisted attorneys in investigating the circumstances surrounding a rupture of a subsea crude oil pipeline caused by a vesseldragging an anchor. This assignment included a review of the impact on crude oil gathering system and receiving terminaloperations, the owner's emergency response, subsea pipeline repair costs, and a determination of the maximum insurable loss. Refinery Business InterruptionPrepared detailed analyses of property damage, business interruption, and demurrage claims resulting from a vessel allision with arefinery dock. Root Cause AnalysisConducted a Root Cause Failure Analysis on a high pressure steam turbine that failed following a planned outage at acogeneration power plant. Evaluated outage work procedures, actual outage work undertaken, start-up monitoring results, andpost-failure turbine inspection results on turbine disassembly. Refinery Business InterruptionDetermined the economic damages suffered by a refiner as a result of multiple incidents which eventually led to reduced feed tothe refinery. Project required the analysis of all refining units, including their actual and planned operations and maintenance. Alternative utilizations of feedstock and supply of products were also investigated. Polyolefins Plant ExplosionAssisted attorneys and company in preparation for litigation and negotiation with government agencies while investigating thecause of an explosion which caused the death of over 20 people. Assisted risk management in preparing and negotiating propertydamage and business interruption claims in excess of $1.3 billion.




Polypropylene ManufacturingAssisted in a dispute concerning insurance claims for property damage and business interruption in connection with a reactorincident during construction of a production facility. Refining Market ForecastInvestigated business interruption claims from fuels refineries, lube refineries, cement plants, fuels distributors, and chemicalsmanufacturers due to the closure of marine access following the release of oil into the waters surrounding the plants. Gas Plant Explosion & Subsequent Insurance ClaimsAssisted resolution of claims between insurance company and Owners/Operators related to a gas plant explosion. Reviewedproperty damage and business interruption claims for accuracy and veracity. Crane Accident Claim AnalysisAnalyzed business interruption and property damage insurance claim by a refinery operator resulting from a crane accident. Thisincluded analysis of the cost to repair the physical damage from the accident, the impact to schedule and cost of a process unitturnaround that was in progress at the time of the accident, and valuation of lost production due to the accident. Oil Field Pipe Dispute-Insurance ClaimReviewed a claim involving an insurance dispute relating to proper preservation of drilling pipe in a storage yard following ahurricane. Refinery Explosion, Subrogation of Insurance ClaimAssisted in a dispute concerning a rebuild estimate, which was the subject of subrogation, for an oil refinery process plantdamaged by an explosion. Review Insurance ClaimReviewed an insurance claim for refinery "opportunity loss" resulting from a dock closure because of an oil spill. Plant Commissioning ReviewProvided initial guidance and comments regarding the development of a commissioning and start-up schedule for a polypropyleneplant. Provided initial input into how plant start-up incidents affected the commissioning schedule. Gas Compressor Incident DisputeProvided expert opinions concerning a gas compressor failure insurance claim related to: (1) evaluating the gas processingfacilities' maintenance and standard of care practices compared to industry standards; and (2) reviewing the operating practicesand programs utilized at the facility to determine if these practices caused or contributed to the incident and subsequent damage. Hurricane Damage Insurance DisputeAssessed the impact of a hurricane to a refinery and its impact on turnarounds being executed at residue upgrading process units. Support included investigating failures incurred to a flare and to a heater, their relationship to the hurricane, and subsequentshutdowns of process units. Shipyard Insurance Claim AnalysisAssessed a business interruption claim filed by a shipyard that resulted from a third-party incident. Based upon our analysis of theclaimant's business operations and performance, claim estimates were developed that formed the basis for settlementnegotiations. Refinery Fire Damage Assessment and Rebuild CostsAssisted in a dispute concerning fire damages and estimated rebuild costs at a petroleum refinery, as well as monitored therebuild project. Gas Plant Fire Damage Repair Costs




Assessed fire-related damages and estimated rebuild cost for a cooling tower at a gas plant. PET Manufacturer Business Interruption ClaimAssisted in a dispute concerning a petrochemicals business interruption claim and lawsuit after a declaration of force majeure bythe manufacturer. Reviewed pertinent data provided by defendant's counsel and prepared written reports, affidavits, anddeposition regarding the claims. Fuel Contamination InvestigationInvestigated an occurrence of contaminated diesel fuel at a mine facility, as well as the claimed property damage and businessinterruption claims. Assessed the root cause of the fuel contamination and prepared a presentation of our findings. Dock Collision Business Interruption ClaimAssisted in a dispute concerning a refinery business interruption claim and lawsuit after a marine vessel allision with a refinerydock. Analyzed need for extraordinary refined product marine and pipeline movements, as well as trading activity and demurrageclaims. Pipeline Pigging Incident InvestigationFollowing a plant incident caused by the ingress of water, we investigated upstream pipeline activities and operating records todetermine the root cause of the incident. Terminal Hurricane Damage Repair and ClaimAssisted in a dispute concerning a rebuild estimate for a terminal damaged by a hurricane. Sulfuric Acid Plant Fire InvestigationInvestigated cause for sulfuric acid plant fire. Reviewed plant operating conditions prior to the fire and the unit design to identify thecause and potential contributing causes to the fire and subsequent explosions. Refinery Business Interruption - Marine SpillConducted an assessment of business interruption damages stemming from downtime caused by an oil spill which disruptedmarine traffic at several adjacent manufacturing facilities. Coker Incident and Design AssessmentReviewed project management procedures and facilities design of an oil refinery project after a subsequent structural failure. Provided written report and oral deposition regarding design responsibility and failure liability. Power Transmission Fire InvestigationInvestigated the cause of major fire that resulted in a fatality. Heat Exchanger Failure InvestigationInvestigated circumstances concerning a heat exchanger failure that resulted in a fire and explosion, fatally injuring severalemployees. Investigation included evaluating relevant operating records and comparing these with design specifications toevaluate whether exchanger was operated, inspected and maintained in accordance within design parameters and industrypractices. Prepared expert report. Tank Truck Fatality Incident Provided inspection of truck tank and tank cleaning facilities related to a fatality accident. Investigation including collecting samplesof tanker contents for further testing. Undersea Pipeline Damage Repair CostsAssisted client by providing opinion on reasonableness of claimed repair costs to an undersea pipeline damaged by a ships'sanchor. Refinery Business Interruption Assessment




Estimated the lost profit (business interruption claim) stemming from a contractor incident which caused an extended refineryoutage. Hydrogen Sulfide Incident InvestigationFollowing a fatality caused by exposure to hydrogen sulfide at a crude oil storage tank with a known sour gas atmosphere,investigated the causes for the incident and the operating and maintenance practices (standard of care) with respect to:supervision, training, and use of personal protective equipment. Confined Space Incident and DisputeProvided support in a wrongful death dispute regarding a confined workspace incident. The incident involved nitrogenasphyxiation where two maintenance contractors died. Investigated the cause and origin of the incident, including work proceduresand practices. Contractor Tripping Incident Investigated circumstances concerning the personal injury of a contract employee. Provided opinions regarding general safetyrequirements, industry practices, contractor training and safety expertise and utilizing contractors for the activity being performed. Storage Tank Spill IncidentDeveloped an expert witness report associated with a spill from a sour naphtha storage tank. Reviewed numerous documentsand depositions to develop opinions associated with the event. Provided expert opinions on the standards of care and operation ofa petroleum refinery. Valve Failure Investigation: Herbicide PlantInvestigated the design and operations of a batch reactor process for the manufacture of herbicides in relation to a piping failure. Equipment material of construction was the focus of the analysis. Chemical Plant Fire RepairProvided technical advice and consultation for recommended repair procedures for vessels and piping damaged in a chemicalplant fire. Fall-Related Injury InvestigationInvestigated circumstances concerning the personal injury of a contract employee who fell inside a flue gas system during arefinery turnaround. The investigation included evaluation of: (1) refinery safe work practices compared to industry standards; (2)utilization of fall arrest systems to mitigate the presence of fall hazards; (3) the responsibilities of both operating companies andcontractors to recognize and develop plans to mitigate fall hazards; and (4) responsibilities of both parties to execute andcommunicate turnaround work plans. Stainless Steel Braided Hose FailureProvided technical expert witness assistance in dispute concerning the failure of a braided stainless steel hose in a medical facility. Storage Tank Foundation FailureFollowing the failure of a storage tank foundation, we reviewed the applicable documentation and prepared an affidavit concerningthe standard of care used during its construction. Debutanizer Tower, H2S IncidentDeveloped an expert witness report associated with an incident concerning an H2S release during the scheduled turnaroundactivities involving a debutanizer tower. Refinery Economic Losses Due to FirePrepared an assessment to quantify the economic damages resulting from a refinery fire that caused damage to equipment and alengthy shutdown of a refinery distillation and conversion train. Prepared a detailed report that documented both business




interruption losses and repair costs for damaged equipment. Provided testimony in deposition and district bench trial. Ethanol Plant Business Interruption DisputeReviewed an insurance claim for an ethanol plant "opportunity loss" due to a power outage resulting from repair work on mainelectrical feed cables after being damaged by a construction contractor. Reviewed operating expenses and ethanol pricing duringthe subject period and provided an opinion on the reasonableness of the size of the claim. Marine Dock Business Interruption ClaimReviewed documents and provided analysis concerning a marine collision with the crude oil unloading dock, which resulted in abusiness interruption claim for a Gulf Coast refiner. Refinery Business Interruption ClaimOn behalf of an insurer, calculated the business interruption expense for a Gulf Coast refinery associated with a delay in receivingcrude oil via ship. Reviewed calculations provided by the refinery and opined on associated business interruption impactsassociated with the delay in receiving crude oil shipments. Provided an expert report, which enabled a settlement in the dispute. Refinery Business Interruption ClaimProvided technical support for a business interruption claim associated with a refinery fire. Evaluated refinery linear programmodel used to develop the "but for" cases. Prepared a report with recommended corrections to the linear program model "but for"case output. Business Interruption Claim AnalysisReviewed preliminary business interruption calculations related to a ship collision incident at a refinery dock. Developed a revisedbusiness interruption estimate, which resulted in a claim settlement. IPP/Refinery Power Generation Outage DisputeAssessed the cause(s) of supplier's steam and electricity generation failure and mitigating actions by the refinery/petrochemicalcustomer. Preliminary findings and a document request were provided to the client. Refinery Construction DisputeAssisted clieExplosion Insurance ClaimProvided report presenting a reasonable timeline and duration to source, contract, start, and conduct the demolition of the parts theGas Plant damaged after the plant experienced a fire and explosion. Ammonia Plant Failure InvestigationAssisted in eElectrostatic Precipitator ExplosionInvestigated Refinery Incident CLaimAssisted in tEthylene Plant Construction DisputeOpined on theMarine Dock Damage Insurance ClaimAnalyzed the Insurance - Sugar Mill: Lost Production ClaimA steam-driveAccident Liability




Assisted in a personal injury claim following an incident in a petroleum refinery process unit. Examined refinery conformity withthe latest available industry technology, regulations, standards, and practices.




expert witness and dispute support property damage and business interruption insurance ... ·...

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